Saturday, October 5, 2019

Dividend Warrior's 9M2019 Portfolio Quick Update - $600k Milestone Achieved!

Is it just me, or is the world getting crazier out there? Donald Trump facing impeachment, Boris muddling towards Bexit, violent rioters getting shot in Hong Kong, political tensions escalating between Japan & South Korea. Oh, don't forget about a teenager lecturing full-grown adults at the United Nations on the subject of global warming and the eventual mass extinction of humans. Meanwhile, fires in the Amazon forest raged on, sending more greenhouse gases into the atmosphere. On the economic front, manufacturing figures and factory output from nations such as China, Germany and Japan continue to trend down. FedEx earnings & sales missed market expectations. HP planning to cut up to 9,000 jobs worldwideSeptember automobile sales dropped in the US. President Trump slapped 25% tariffs on various European goods & products. I'm not holding my breath for a successful trade deal between the US and China anytime soon. It's gonna drag on for sure.

It seems the only group of people who still care about the global economy and took decisive actions were the central banks. The US Federal Reserve and European Central Bank cut rates in the third quarter. Following the footsteps of Japan, bond yields in Europe have gone negative too. Slowing growth, stubbornly low inflation and lack of real wage growth in the developed nations. That's the state of the world right now. There is no alternative (TINA) but to hunt for higher yields in REITs and dividend stocks. Assets which are generating stable cashflow are in demand. There is no way the central banks can afford to hike rates and risk a global recession. Interest rates are never going back to the previous high of 5%, not in the near future anyway. Luckily, Singapore is a leading REITs hub in Asia. We should capitalise on this niche advantage.

Top 15 Core Holdings (As of 30 Sep 2019)

Portfolio Cost: S$458, 587
Portfolio Market Value: S$604, 955
Portfolio Overall Unrealized Profit: S$146, 368
Dividends Collected (9M2019): S$19, 210
Current Warchest: S$8, 000

Portfolio Actions in 3Q2019:
  • Initiated small position in Hong Kong Land
  • Averaged down on Propnex, which overtook Suntec REIT as my 15th largest core holding
  • Applied 2000 units for Keppel DC REIT preferential offering